CORRECTED-US STOCKS-S&P 500 near flat as healthcare in spotlight


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 (Refiles to add dropped word "not" in paragraph 7.)
    * PBMs rise after White House kills rebate rule
    * Biotechs, drugmakers drag on healthcare sector
    * Fed's Powell resumes testimony before Congress
    * Indexes: Dow up 0.7%, S&P 500 up 0.07%, Nasdaq down 0.2%

    By Caroline Valetkevitch
    NEW YORK, July 11 (Reuters) - The S&P 500 was little changed
in afternoon trading on Thursday, with healthcare stocks mixed
after the Trump administration withdrew a rule that would kill
    Shares of pharmacy benefit managers gained as the news meant
these companies would continue to benefit from after-market
discounts from drugmakers. Health insurers and drug distributors
also rose.*:nL4N24C2KC
    A 5.3% gain in UnitedHealth Group Inc  UNH.N  helped the Dow
break above 27,000 points for the first time. Cigna Corp  CI.N 
surged 9%.
    At the same time, drugmakers such as Merck & Co Inc  MRK.N 
and Pfizer Inc  PFE.N  dropped and the Nasdaq biotech index
 .NBI  fell 1.7%. The healthcare index  .SPXHC  was down 0.3%.
    Helping to support stocks were comments from Federal Reserve
Chairman Jerome Powell, which boosted expectations for an
interest-rate cut.
    Powell, in his first day of testimony before Congress on
Wednesday, confirmed the U.S. economy was still under threat
from disappointing factory activity, tame inflation and a
simmering trade war and said the Fed stood ready to "act as
appropriate." Powell testified before the Senate Banking
Committee on Thursday.
    The S&P 500 rose above the 3,000 level for the first time
Wednesday following the news and hit a high of 3,002.33 on
Thursday, but the index has not been able to hold above that
    "The market has tried several times this week to get through
it and hold; that's been a big wall of psychological
resistance," said Michael James, managing director of equity
trading at Wedbush Securities in Los Angeles. 
    The Dow Jones Industrial Average  .DJI  rose 174.03 points,
or 0.65%, to 27,034.23, the S&P 500  .SPX  gained 1.97 points,
or 0.07%, to 2,995.04 and the Nasdaq Composite  .IXIC  dropped
13.86 points, or 0.17%, to 8,188.67.
    Iron Mountain  IRM.N  slumped after Bank of America Merrill
Lynch downgraded the document storage company's shares to
"underperform," citing recent declines in recycled paper
    A Labor Department report showed U.S. underlying consumer
prices rose by the most in nearly 1-1/2 years in June, but that
was unlikely to change expectations the Fed would cut rates this
    Declining issues outnumbered advancing ones on the NYSE by a
1.19-to-1 ratio.

 (Additional reporting by Medha Singh and Manas Mishra in
Bengaluru; Editing by Shounak Dasgupta, Maju Samuel and Jonathan
 ((; +1 646 223 6393;
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